On December 14, 2023, Greenmount LLC d/b/a ColdFire, filed a federal lawsuit seeking to stop Nicholas Coburn and Cleanline Management from continuing to offer our Flavorade line of cannabis vaping products to the California market.
On December 30, 2024, both Cleanline Management and Nick Coburn filed motions for judgment on the pleadings which requested a court order to dismiss all claims alleged by Greenmount against Cleanline Management and Nick Coburn on the basis that Greenmount’s Second Amended Complaint failed to state any valid claims.
On February 3, 2025, Greenmount opposed our motion and also filed its own motion to voluntarily dismiss the lawsuit in order to refile the same claims in California state court. We vigorously opposed Greenmount’s motion, submitting arguments to the Court that Greenmount’s claims were entirely baseless, and that Greenmount only sought to refile its claims in state court as a means of avoiding an adverse ruling on our motions for judgment on the pleadings.
We are pleased to announce that on April 11, 2025, the Court issued a ruling completely in our favor in which it granted our motions for judgment on the pleadings in full and denied Greenmount’s motion for voluntary dismissal without prejudice. In reaching its decision, the Court found that Greenmount’s “blatant tactical maneuvering shall not stand,” Order at 5, and denied Greenmount’s request to amend its complaint, finding that Greenmount “waited nearly five months to request leave to amend and even then, only because of Defendants’ MJOP.” Order at 11. The Court further held that Greenmount “seeks voluntary dismissal for improper purposes,” (Order at 13), and that “[i]t is clear that in moving for voluntary dismissal, Plaintiff seeks to avoid an adverse ruling and excuse its dilatoriness,” (Order at 14). A copy of the Court’s ruling can be downloaded here.
https://drive.google.com/file/d/1JR5IGGIsSTaMzjvoBdPqBq8nRfviZyjJ/view?usp=drive_link
Cleanline Management has continuously denied Greenmount’s allegations, and we are pleased to report that those baseless allegations have now been dismissed by the Court. We remain focused on delivering exceptional cannabis vape carts under the Flavorade brand and maintaining the trust of the cannabis enthusiast community. We appreciate the ongoing support of our customers, partners, and stakeholders, and we look forward to continuing to roll out Flavorade products across California.
